Business
Lewis & Clark Bancorp announces 2023 First Quarter Results
Lewis & Clark Bancorp announces 2023 First Quarter Results.
About this update from Lewis & Clark Bancorp
[{"type":"text","content":"\nLewis & Clark Bancorp (OTC Pink: LWCL) announces 2023 first quarter consolidated results. Quarter to date net loss totaled $227,000 for the three months ended March 31, 2023, a decrease of $611,000 compared to net income totaling $384,000 for the same period last year. Earnings (loss) per share were $(0.21) for the current year quarter, compared to $0.36 for the prior year quarter.\n\n\nThe decreased earnings in the current year quarter were due to a decrease in both net interest income and the provision for income taxes, partially offset by an increase in noninterest income compared to the same period one year ago. The decrease in net interest income was due to an increase in interest expense as a result of increased rates paid on deposits and interest expense on borrowings, partially offset by an increase in interest and fees on loans and investments, primarily due to increases in interest on interest bearing cash and interest and fees earned on loans. Net interest margin was 2.09% for the current year quarter compared to 2.58% for the same quarter one year ago. The decrease in the net interest margin was due to an increase in interest expense on deposits and borrowed funds. The decrease in the provision for income taxes was due to a decrease in pre-tax earnings compared to the prior year period. The increase in noninterest income was due to increases in fees earned from channel partnerships, dividends earned, and an unrealized gain on equity securities, partially offset by a decrease in gains on investment securities.\n\n\nInvestment Securities\n\n\nDue to the recent and unprecedented increase in market interest rates, the investment securities portfolio generated a negative net interest margin in the current year quarter. The corresponding net interest loss generated from the investment securities portfolio was $1.0 million for the three months ended March 31, 2023. The instruments held in the investment securities portfolio are predominantly fixed-rate U.S. Treasury and agency securities with an average remaining life of 3.1 years as of March 31, 2023. While the bulk of these securities are scheduled to mature in four annual installments beginning in the fourth quarter of 2023, it is expected that they will continue generating a negative net interest margin until the related securities mature, are sold, or market inte...